Atlanta & Southeast + National | July 18, 2022

Florence Mall in Florence, Kentucky sold at a loss in June 2022

CMBS Loan Loss Volume Decreases in June

In June, $244 million across 12 CMBS loans were resolved with $92.79 million in losses, carrying an average loss severity of 38.04% for the month, Trepp’s Jack LaForge reported. This represented a sizeable decrease in loan loss volume from the previous month. The 12-month average disposition balance fell to $316.42 million, while the 12-month moving average loss severity stood at 57.51%, slightly up from 56.91% seen in May.

The largest loan to resolve with a loss in June is the $89.40-million Florence Mall, backed by a 384,111-square-foot regional mall in Florence, KY, within the Cincinnati metro area.

The collateral was valued at $158.6 million in 2012, which had fallen to $47.1 million as of December 2021. This June, the mall was acquired for $37.8 million by Mason Asset Management and Namdar Realty.

“Despite the low sales price, liquidation proceeds were considerably higher,” LaForge reported. “Servicer data reports liquidation proceeds of $44.3 million, making the loss in the subordinate tranches of the deal lower than what was expected.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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